Cool information for number crunchers. Enjoy the official details below.
TOKYO – November 9, 2021 – NEXON Co., Ltd. (Nexon) (3659.TO), a global leader in Virtual Worlds, today announced the financial results for its third quarter ended September 30, 2021.
“Nexon delivered a strong Q3, exceeding the high end of our outlook based on revenue growth in our key franchises, including MapleStory in Korea, Dungeon&Fighter in China, FIFA ONLINE 4[1]and The Kingdom of the Winds: Yeon,” said Owen Mahoney, President and CEO of Nexon. “Nexon is delivering on its promises. We are building momentum, strengthening our core business and preparing to launch several catalysts in 2022, including KartRider: Drift, a new game from our Embark Studios and, in the first quarter, Mobile Dungeon&Fighter in Korea.”
Third Quarter 2021 Highlights:
Following exceptionally strong growth in Q3 2020, group revenues were ¥75.9 billion, down 4% year-over-year on an as-reported basis and down 11% year-over-year on a constant currency basis[2].
– All regions performed above the expected range except Japan, which delivered revenue within the expected range.
– On a platform basis, PC[3] revenues exceeded the expected range and mobile revenues came within the expected range.
– Operating income was ¥29.8 billion, up 8% year-over-year, exceeding our outlook primarily driven by revenue outperformance.
– Net income[4]was ¥37.9 billion, up 132% year-over-year, exceeding our outlook.
In Korea, MapleStory showed a second quarter of sequential improvement in Net Promoter Score – a key indicator of player satisfaction. MapleStory’s Q3 revenue exceeded the company’s outlook based on a well-received event in August and successful promotions conducted in time for the Korean Chuseok holiday.
Major PC titles including Dungeon&Fighter in Korea grew year-over-year, including Sudden Attack which grew by more than 200% year-over-year.
In Japan, revenues decreased by 5% year-over-year due to revenue decreases from TRAHA and MapleStory M, which offset MapleStory’s growth and contributions from Blue Archive and FIFA MOBILE[5].
In China, revenues exceeded the outlook. A change in the Dungeon&Fighter creative team contributed to improved player engagement and stronger-than-expected sales from a National Day package. On a year-over-year basis, revenues increased by 45% on an as-reported basis and by 33% on a constant currency basis2.
Other Highlights:
On November 1, Nexon announced plans to launch Mobile Dungeon&Fighter in Korea during the first quarter of 2022. Nexon continues to coordinate with its Chinese publishing partner, Tencent Games, on the game’s release in China, although Nexon presently has no information with respect to the timing of the release. The new game, optimized for mobile, is based on Nexon’s blockbuster Dungeon&Fighter IP, which has been played by more than 700 million people worldwide and generated more than US$15 billion in lifetime revenue.
In September, Nexon announced global publishing support for HIT2, a game developed by its subsidiary NAT GAMES Co., Ltd. for the PC and mobile platforms.
Nexon’s Embark Studios in Stockholm, Sweden has revealed information on three projects – two new Virtual Worlds and a groundbreaking creative platform. The first Virtual World – codenamed Pioneer – is scheduled to launch in 2022. All three projects are built with unique technology developed by Embark, including procedural tools and machine learning for content creation unlike anything else in the market.
On October 28, Nexon announced KartRider: Drift will conduct closed beta testing from December 9-15. The new game is based on Nexon’s highly successful KartRider franchise, which has generated more than 380 million registered players worldwide. KartRider: Drift is scheduled for its launch in 2022 on multiple platforms including PC and consoles – Xbox One®6 and PlayStation 4®[6]. For the first time, KartRider: Drift will also be available on the world’s fastest-growing game platform, mobile.
Fourth Quarter 2021 Outlook:
Expect group revenues to be in the range of ¥51.2 to ¥57.0 billion, representing a 23% to 14% decrease year-over-year on an as-reported basis and a 26% to 18% decrease year-over-year on a constant currency basis2
– Expect operating income to be in the range of ¥2.5 to ¥6.9 billion
– Expect net income4 to be in the range of ¥0.3 to ¥3.6 billion
Forex sensitivity[7]: Every one Japanese yen move against the U.S. dollar would have the following impact on our financials for Q4 2021
– Revenues: ¥0.46 billion
– Operating Income: ¥0.07 billion
